Protector Forsikring ASA · OSL:PROT
Protector Forsikring ASA — Q2 2009 Earnings Presentation
17 slides from Protector Forsikring ASA's earnings presentation, Aug 25, 2009
Slide 1: Results Q2 2009
Results Q2 2009 Best quarter ever - Increased guiding August 25th 2009
Slide 2: Highlights Q2 2009
Highlights Q2 2009 • Continued growth, GWP NOK 215m, up 8% (underlying 12%) – Commercial and public lines of business, up 46% – Change of ownership insurance, down 28% - Underlying trend in Q2, down 15%, due to product change in Q2 2008 • Operating profit of NOK 96,6m, up 72% • Net combined ratio, 9
Slide 3: Gross written premium Q2 2009
Gross written premium Q2 2009 GWP up 8 %, from NOK 198.4m to NOK 215m • 46% growth within the commercial and public lines of business, stronger than guided • Two large customers on board and one loss in the commercial sector, net volume approx. NOK 9m • Strong renewal rate in commercial sector 94%,
Slide 4: Claims development Q2 2009
Claims development Q2 2009 Net claims ratio 78,6%, down from 83%, but weaker than expected • Run-off-losses of NOK 13.2m, down from NOK 25.7m in Q2 2008 – Change of ownership insurance; Run-off-losses of NOK 14.2m – Commercial and public lines of business; Run-off-gains of NOK 1.2m • Two large claim
Slide 5: Cost ratio Q2 2009
Cost ratio Q2 2009 Gross cost ratio Q209 15,5%, up from 14,1% • Increased manning costs due to increased no. of employees • One off costs – Nemi process, MNOK 4 (NOK 1m in Q2), – Pension agreement CEO (NOK 3m in Q2) • Cost cut programme, on schedule – Sales costs commercial sector, down NOK 6m in H1
Slide 6: Highlights Q2 2009 - Commercial and public lines of business
Highlights Q2 2009 - Commercial and public lines of business • 46% volume growth (stronger than guided) - Still strong competition in the municipality sector, no wins - Increased business volume from “big three brokers” - Increased volume and hit-ratio from medium sized customers, NEMI’s problems bo
Slide 7: Highlights Q2 2009 - Change of ownership insurance
Highlights Q2 2009 - Change of ownership insurance • Volume down 28%, better than guiding - Hit-ratio up to 71%, still climbing - Market share still strong above 50% Gross written premium (NOKm) 263 • Real estate market continues to improve - Prices up 12.1% from December 2008 153 - Average sales ti
Slide 8: Results Q2 2009
Results Q2 2009 MNOK Q2 2009 Q2 2008 YTD 2009 YTD 2008 2008 Premiums written gross 215,0 198,4 603,1 516,9 729,0 Premiums earned gross 217,9 204,8 398,8 369,1 720,5 Claims incurred gross (183,5) (153,8) (325,2) (281,5) (549,1) Premiums earned for own account 170,6 146,2 310,2 352,0 592,4 Claims incu
Slide 9: Balance sheet Q2 2009
Balance sheet Q2 2009 MNOK 30.06.2009 30.06.2008 31.12.2008 Financial assets 1 493,6 1 315,6 1 221,3 Bank deposits 117,2 90,0 37,2 Other assets 481,2 473,0 362,4 Total assets 2 092,1 1 878,6 1 620,9 Total equity 422,9 528,1 355,9 Total reserves 1 402,8 1 072,1 1 025,5 Other liabilities 266,4 278,3 2
Slide 10: Solvency capital H1 2009 – Solid capital position
Solvency capital H1 2009 – Solid capital position Solvency capital (NOKm)¹ 700 642,6 668,8 616,3 600 508,9 500 326,5 400 300 200 118,6 59,0 100 0 2004 2005 2006 2007 2008 H1 2009 Est 2009 Solvency margin Return on Solvency Capital 350 % 323 % 40 % 40 % 35 % 300 % 30 % 30 % 250 % Target 20% 20 % 23 %
Slide 11: Investment result Q2 2009
Investment result Q2 2009 Net investment result of NOK 86.4m compared with NOK 46.4m in Q2 2008 • Investment portfolio of NOK 1.49 bn • Equities; Return of 33% in Q2, OSEBX 24,7% • Bonds; Risk exposure further reduced in Q2 Return Q2 2009 per asset class Return H1 2009 per asset class 33,0 % 39,7 %
Slide 12: Asset allocation
Asset allocation Asset allocation 30 June 09 Asset allocation 31 December 08 Equities Equities 19,2 % 15,0 % Bonds HTM Money 12,1 % m arket Bonds HTM Money 54,6 % 16,5 % m arket 61,8 % Bonds 11,1 % Bonds 9,7 % Total financial assets 30.06.2009 Total financial assets 31.12.2008 NOK 1.494m NOK 1.221 m
Slide 13: Combined ratio H1 2009
Combined ratio H1 2009 141,8% 150 % 126% 125 % 93,7% 94,6% 96,1% 96,5% 98,1% 99,7% 100 % 99,3 % 86 % 75 % 70,2 % 70,1 % 76,5 % 77,4 % 76,9 % 80,7 % 50 % 25 % 40 % 42,5 % 23,6 % 26,4 % 21,6 % 22,3 % 17,7 % 15,4 % 0% If… Gjensidige Protector KLP Sparebank1 TrygVesta Storebrand Unison Cost ratio Claims
Slide 14: Shareholder matters August 2009
Shareholder matters 17 August 2009 Shareholder No. shares Percent Verdipapirfond Odin Norden 7 324 455 8,50 % Morgan Stanley & Co INTL PLC 4 536 333 5,27 % Bank of New York, Mellon SA/NV 4 479 410 5,20 % Option program DNB NOR Luxembourg SA 4 114 934 4,78 % Ojada AS 3 563 116 4,14 % • Outstanding op
Slide 15: Outlook 2009, increased
Outlook 2009, increased Guiding May 6th 2009 Guiding August 25th 2009 • GWP up 10% GWP up 18% – Status per Q2, ahead of schedule • Operating profit NOK 120m Operating profit NOK 180m – Combined ratio 92% Combined ratio 94% • Status Q2, claims ratio behind schedule, cost ratio on schedule – Return on
Slide 16: Outlook 2009
Outlook 2009 NOKm 2008 2009 2009 2009 Positive Negative Feb May Aug scenario scenario Premium growth 10% 5% 10% 18% Operating profit 9.4 120 120 180¹ 195 165 Investment income -28.2 70 70 145 Gross cost ratio(%) 18 17 17 17 Combined ratio (%) 94.9 92 92 94 92 96 Return assumptions (H2 2009): Equity
Slide 17: Summary Q2 2009
Summary Q2 2009 • Operating profit of NOK 96,6m, up 72% • GWP up 8% (underlying 12%) despite a weak real estate market • Strong return on investments, 6,6%, up from 3,3% • Increased guiding August 25th – Volume growth from 10% to 18% – Operating profit from NOK 120m to NOK 180m • Dividends on the hi